C&C Group sees half-year sales rise 4%

Beverage and snacks group C&C said group turnover in the first half is expected to have risen by about 4 per cent from €363…

Beverage and snacks group C&C said group turnover in the first half is expected to have risen by about 4 per cent from €363.9 million last year.

Describing the sales as a "creditable performance" in light of the ban on smoking in the workplace and mixed summer weather, it said margins, on a constant currency basis, were broadly unchanged during the period from 17.3 per cent last year.

Performance in each of the group's three divisions - alcohol, international spirit & liqueurs and soft drinks and snacks - was broadly in line with C&C's expectations, it added.

On its alcohol division, sales volume of its principal brand, Bulmers, is expected to show growth of about 4 per cent in the half year. Underlying growth is estimated at about 2 per cent, which is in line with the group's expectations.

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The company said the ban on smoking in licensed premises is a contributory factor in the estimated overall decline of 2 per cent in the long alcohol drinks market in the five months to end July. This comprises an estimated 5 per cent decline in the on-trade and a 10 per cent growth in the off-trade.

On its International Spirits and Liqueurs, the company said Carolans, which was relaunched in June, has been well received by distributors. The group's two growth brands, Carolans and Tullamore Dew, achieved strong shipment growth in the period.

The currency impact of the weaker US dollar/Canadian dollar on operating  profit will amount €6.8 million in the full year compared to the previous year and about one-third of this will arise in the first half.

On its soft drinks and snacks, volume decline in Ireland's carbonated soft drinks market slowed to 2 per cent in the five months to end July while continued strong growth in bottled water and energy/sports drinks resulted in an overall flat soft drinks market in the five months.